JPMorgan upgrades Wilmar to Neutral from Underweight and raises the target price to $5.40 from $4.60; the house says the “worst may be over” for the world’s biggest palm oil trader.
JPM reckons 4Q of 2010 may have been the trough and it points to positives such as better South American soybean production reducing feedstock costs and stronger palm and laurics volume and margin.
JPM reckons 4Q of 2010 may have been the trough and it points to positives such as better South American soybean production reducing feedstock costs and stronger palm and laurics volume and margin.
However, the house also flags challenges from high inflation in China and risk of management taking wrong directional view on commodity prices.
Wilmar shares are up 1.2% at $5.26.
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